Published on 6/20/2018 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: EQT Midstream Partners sells $2.5 billion of fixed-rate notes in three tranches
By Cristal Cody
Tupelo, Miss., June 20 – EQT Midstream Partners, LP priced $2.5 billion of split-rated senior notes (Ba1/BBB-/BBB-) in three fixed-rate tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
EQT sold $1.1 billion of 4.75% five-year senior notes at 99.761 to yield 4.803%, or a spread of Treasuries plus 200 basis points.
The company priced $850 million of 5.5% 10-year senior notes at 99.538 to yield 5.56% and a Treasuries plus 262.5 bps spread.
EQT also sold $550 million of 6.5% 30-year notes at 99.055 to yield 6.572%. The notes priced with a spread of 350 bps over Treasuries.
The notes all came on the tight side of initial guidance.
BofA Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., PNC Capital Markets LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to repay debt under the company’s EQM term loan facility and for general partnership purposes.
The energy company is based in Pittsburgh.
| Issuer: | EQT Midstream Partners, LP
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., PNC Capital Markets LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | SMBC Nikko Securities America, Inc., Citizens Capital Markets, Inc., Huntington Investment Co. and CIBC World Markets Corp.
|
| Trade date: | June 20
|
| Settlement date: | June 25
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | July 15, 2023
|
| Description: | Fixed-rate notes
|
| Coupon: | 4.75%
|
| Price: | 99.761
|
| Yield: | 4.803%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call before June 15, 2023 at Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps to 212.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | July 15, 2028
|
| Description: | Fixed-rate notes
|
| Coupon: | 5.5%
|
| Price: | 99.538
|
| Yield: | 5.56%
|
| Spread: | Treasuries plus 262.5 bps
|
| Call features: | Make-whole call before April 15, 2028 at Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 262.5 bps to 275 bps area
|
|
|
| 30-year notes
|
| Amount: | $550 million
|
| Maturity: | July 15, 2048
|
| Description: | Fixed-rate notes
|
| Coupon: | 6.5%
|
| Price: | 99.055
|
| Yield: | 6.572%
|
| Spread: | Treasuries plus 350 bps
|
| Call features: | Make-whole call before Jan. 15, 2048 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 350 bps area
|
|
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